Feeds

India's outsourcers look east with eyes on Asian tigers

China, Japan and South Korea could be next for Nasscom

Choosing a cloud hosting partner with confidence

Indian IT services group Nasscom is turning its attention eastwards with a focus on China, Japan and other previously untapped markets in an attempt to maintain the industry’s double-digit growth.

The country’s outsourcers have historically focused their efforts on customers in the UK and US, but president R Chandrasekhar said at the ITsAP SME conference this week that this would change, according to the Economic Times.

"These are areas, we are actively trying to refine our strategy and are working with the companies on refining that strategy," he said, referring to markets including China, Japan and South Korea.

"At this point, I will not be able to say this is our strategy for this particular country. But, it is quite clear that the same strategy which was used in US and UK, may not be applicable in Europe. The same strategy which is used in Europe may not be applicable in Japan,"

China especially is thought to be something of an untapped goldmine for India’s IT services giants. Although firms like Infosys and Tata have had operations there for a number of years, they’ve not performed particularly well.

Nasscom’s deputy director of global trade development, Gagan Sabharwal, told Livemint that the body’s initial focus in China would be on the government sector.

However, as in the US, visas for workers remain a stumbling block.

“The problems that most top executives, even CEOs, of Indian IT firms face when they travel to China is that these visas are issued for very short durations and they are not multiple-entry visas,” he said.

“What we’re asking for is to issue business visas that will be valid for 2-3 years at least.”

China’s IT spend is set to grow by eight per cent a year to $172.4 billion (£104bn) by 2016, according to Gartner.

Nasscom, meanwhile, is predicting India’s outsourcing industry will expand 13-15 per cent next year, an improvement on the 12-14 per cent projected for 2014.

It remains to be seen how successful the Indian IT body will be with its Asian pivot plans.

A recent report by Forrester, for example, pointed out that China's homegrown outsourcing market is itself maturing to the point where firms like Gamutsoft and Pactera are now aggressively targeting multinationals. ®

Internet Security Threat Report 2014

More from The Register

next story
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
China is ALREADY spying on Apple iCloud users, claims watchdog
Attack harvests users' info at iPhone 6 launch
Carders punch holes through Staples
Investigation launched into East Coast stores
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.